-- Posted Wednesday, 20 July 2011 | | Disqus
Overnight gold began to slip falling below $1590 at London’s opening. Thereafter it continued to fall into the mid-$1,580 area. The euro rose marginally to $1.4210 after the Fix, with gold being Fixed at $1,584.25 down $18 on yesterday. Gold was Fixed in the euro at €1,116.77 down €20 from its peak.
After the Fix, gold rose again moving up to $1,588 with the euro rising against the dollar to €1: $1.4198.
Just ahead of New York’s opening, gold dipped slightly to $1,5866 alongside a dollar standing at €1: $1.4208 with gold in the euro at €1,115.24.
Silver fell back to $38.63 in London’s morning after Fixing at $38.59 down nearly $2. It then traded at $36.86 ahead of New York’s opening.
Gold - Very Short-term
Gold may well slip further, in New York today.
Silver – Very Short-term
Silver may slip further, in New York today.
Silver & Gold Price Drivers
At the first sign of a break in the impasse over the ‘debt ceiling’, all equity markets rose and the gold price receded. Because it is the debt crises on both sides of the Atlantic that presently drive both the silver and gold prices at the moment, gold had to pull back.
There is talk that one of three avenues exists to bail out Greece, but Angela Merkel, Chancellor of Germany made it clear that there would not be one simple solution. Translated, the problem is not simply to bailout Greece and hope it does privatize its state assets quickly. It is to address all the Eurozone potential debt crises, present and future. This will take time and may only be solved by drastic and unexpected action.
The global markets are looking for a more immediate solution, we believe.
The slowness of Greece’s actions after the first bailout is deterring the euro from recovering, but there is a market mood around now that is searching for any excuse to take equity markets up and to pull gold down. This mood is driven by profit taking in gold by short-term traders and a sort of exhaustion of bearish attitudes. It’s almost as if equity investors believe that things cannot get worse….. So financial markets all round are bouncing.
There remains a month before the end of the Indian monsoon and the start of the ‘gold season’ in India. Traditionally the gold price is at its yearly low.
[The Gold Forecaster and Silver Forecaster discuss all these points and more making them a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,300.96: 1 ounce of gold. Friday: Sf1,314.05: 1 ounce of gold.
U.S. $ - Today: $1,586.15: 1 ounce of gold. Friday: $1,600.55: 1 ounce of gold.
Euro - Today: €1,115.24: 1 ounce of gold. Friday: €1,128.02: 1 ounce of gold.
India –Today: Rs. 70,502.78: 1 ounce of gold. Friday: Rs.71,366.92: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 20 July 2011 | Digg This Article | Source: GoldSeek.com